Data released on Tuesday as part of the central bank's monthly bulletin revealed that the Reserve Bank of India (RBI) purchased a net $13.25 billion in foreign exchange on the spot market in March.
According to the RBI, throughout the month, it bought $14.84 billion and sold $1.59 billion. It had purchased $8.56 billion in net spot market value in the preceding month. In March, the value of the Indian rupee fell by 0.6% compared to the US dollar, trading between 82.64 and 83.45.
According to the statistics, the RBI's net outstanding forward sales at the end of March were $541 million, while its net purchases at the end of February were $9.69 billion.
To reduce currency rate volatility, the central bank makes interventions in the spot and futures markets. On Tuesday, the currency ended the day at 83.3050 per US dollar.
